Erie Highlands Metropolitan District Nos. 3-5

In accordance with Section 32-1-104.5(3)(X), C.R.S., the following general explanation in plain, nontechnical language, is provided.  This information is intended to be read in conjunction with all applicable legal requirements, governing documents, agreements, resolutions, and determinations of the Boards of Directors of the Districts.

1.  A metropolitan district is a special district that provides any two or more of the following services:

(a) Fire protection;

(b) Mosquito control;

(c) Parks and recreation;

(d) Safety protection;

(e) Sanitation;

(f) Solid waste disposal facilities or collection and transportation of solid waste;

(g) Street improvement;

(h) Television relay and translation;

(i) Transportation; and

(j) Water.

2.  In accordance with the Districts’ Service Plan, the Districts may provide the following public improvements and services:

(a) Fire protection;

(b) Mosquito control;

(c) Parks and recreation;

(d) Safety protection;

(e) Sanitation;

(f) Solid waste disposal facilities or collection and transportation of solid waste;

(g) Street improvement;

(h) Television relay and translation;

(i) Transportation;

(j) Water; and

(k) Covenant enforcement.

The Districts do not currently anticipate directly undertaking construction of any additional public improvements.

District No. 4 provides the following ongoing services on behalf of the Districts: landscaping and snow removal services.

3.  In accordance with the Districts’ Service Plans, each District (inclusive of Erie Highlands Metropolitan District Nos. 1 and 2 and any special improvement districts created within the Districts pursuant to Section 32-1-1101.7, C.R.S.) shall not issue debt in excess of the total aggregate amount of Sixty Million Dollars ($60,000,000) to provide and pay for public infrastructure, provided that the foregoing shall not include the principal amount of debt which has been refunded by the issuance of refunding debt.

4.  In accordance with the Districts’ Service Plans, the following revenue may be used to pay for each District’s debt: All Debt issued by the Districts may be payable from any and all legally available revenues of the Districts, including general ad valorem taxes to be imposed upon all taxable property of the Districts.

5.  In accordance with the Districts’ Service Plans, the maximum mill levy each District may assess to pay for its debt is: fifty (50) mills; provided that if, on or after January 1, 2014, there are changes in the method of calculating assessed valuation or any constitutionally mandated tax credit, cut or abatement; the mill levy limitation applicable to such Debt may be increased or decreased to reflect such changes, such increases or decreases to be determined by the Board in good faith (such determination to be binding and final) so that to the extent possible, the actual tax revenues generated by the mill levy, as adjusted for changes occurring after January 1, 2014, are neither diminished nor enhanced as a result of such changes. For purposes of the foregoing, a change in the ratio of actual valuation shall be deemed to be a change in the method of calculating assessed valuation.

6.  Residents may serve on the Board of Directors of a District if they are eligible electors of that District. A resident is an eligible elector of a District if the resident lives within the boundaries of the District and is registered to vote in Colorado.